NERC Says FG Paid N36bn For Electricity Subsidy In 3 Months

The Nigerian Electricity Regulation Commission (NERC) says the Federal Government paid N36bn to subsidise electricity consumption in the first quarter of 2023.

In its quarterly report, NERC says the money amounts to the payment of N12bn monthly which was paid to the Nigerian Bulk Electricity Trading (NBET).

With the NBET charged with the collection of revenues due to generation companies and the Transmission Company of Nigeria from the DisCos, the sum of N141.5bn was paid to the NBET from the N209.2bn invoice given to the DisCos.

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Recall that the total revenue collected by the 11 Distribution Companies (DisCos) in the first quarter was N247bn from the N359.3bn billed to customers.

NERC adds that the government intervention was made due to the absence of cost-reflective tariffs. The energy commission also adds that the government undertakes makes the payments to cover the resultant gap between the cost-reflective and allowed tariff in the form of tariff shortfall funding. This funding is applied to the NBET invoices that are to be paid by DisCos.